25 slides from Svenska Cellulosa Ab Sca Class A's merger presentation, Dec 19, 2016
Slide 1: SCA to Acquire BSN Medical, A Leading Medical Solutions Company
SCA to Acquire BSN Medical, A Leading Medical Solutions Company December 19, 2016
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our most recent annual report for a better understanding of these risks and uncert
Slide 3: Magnus Groth and Fredrik Rystedt
Magnus Groth President and CEO Fredrik Rystedt Executive Vice President and CFO December 19, 2016 3
Slide 4: SCA to Acquire BSN Medical, A Leading Medical Solutions Company
SCA to Acquire BSN Medical, A Leading Medical Solutions Company Excellent strategic fit supporting SCA’s vision to improve well-being through leading hygiene and health solutions BSN medical develops, manufactures, markets and sells products within wound care, compression therapy and orthopedics wit
Slide 5: SCA's Transformation Journey
SCA’s Transformation Journey SCA plans to split the Group into two listed companies; Hygiene and Forest Products 2007-2016 Acquisitions: Divestments: • Wausau, AfH tissue, NA • Packaging business • Vinda, tissue, China • Two publication paper mills • P&G, tissue, EU • GP, tissue, EU 100% 1975-2006 A
Slide 6: SCA Strategic Framework
SCA Strategic Framework December 19, 2016 6
Slide 7: Favorable Market Trends
Favorable Market Trends Growing and aging global population Increased prevalence of chronic conditions, General such as obesity and diabetes Market Trends Rapid growth in emerging markets Consumerization trend is transforming parts of the market Specific Market Trend towards proactive treatment driv
Slide 8: BSN Medical
BSN Medical A leading global medical solutions company which develops, manufactures, markets and sells products for wound care, compression therapy and orthopedics Innovative company, well-known brands such as Leukoplast, Cutimed, JOBST, Delta Cast, Delta Lite and Actimove - long established brand l
Slide 9: BSN Medical – A Strong Market Offering
BSN Medical – A Strong Market Offering Excellent go-to-market with large sales force. Enabling a range of commercial excellence models depending on region and reimbursement structure combined with commercial balance with distributors Direct interaction with key influencers and prescribers like nurse
Slide 10: BSN Medical Product Overview
BSN Medical Product Overview Wound Care Compression Therapy 26% Orthopedics 34% 36% Acute Wound Care 27% Phlebology 19% Fracture Management 19% Key products: surgical tapes, retention Key products: compression stockings, Key products: cast tape, splinting, bandages, surgical/post-operation medical c
Slide 11: BSN Medical Sales Split 2015
BSN Medical Sales Split 2015 Per Business Area Per Geography Per Sales Channel 4% 6%4% 23% 36% 14% 34% 38% 53% 16% 23% 26% 23% Wound Care Orthopedics Europe North America Hospitals/Specialist Pharmacies Compression Therapy Other Asia Pacific Latin America Middle East, Africa Sanitary Shops Other* *O
Slide 12: The Global Med Tech Market
The Global Med Tech Market Complexity Low High Incontinence Products, Medical Complexity Complexity Supplies and Disposables Equipment Devices Devices Pumps for drug delivery Incontinence Fracture management Hearing aids Products Ophthalmic instruments Diagnostic equipment Compression garments Steri
Slide 13: BSN Medical Addressable Market
BSN Medical Addressable Market Wound Care Orthopedics* Compression Market Size: Therapy Market Size: EUR 5.3bn Advanced Wound Care ~4% EUR 3.9bn Market Size: Traditional Wound Care ~2% ~4% EUR 2.4bn ~5% Global Market Size 2015: EUR 11.6bn Bubble size: Market size Market Growth CAGR** 2015-20
Slide 14: Wound Care Market Overview
Wound Care Market Overview Global addressable wound care market 2015 (EUR bn): Advanced Traditional Wound Care Wound Care 5.3 1.1 0.7 3.5 Total Dressings Fixation Products Advanced Dressings 4% 1% 2% 5% Dressings Fixation Products Advanced Dressings Dry dressings and first aid Mostly fixation ba
Slide 15: Orthopedics Market Overview
Orthopedics Market Overview Global addressable orthopedics market 2015 (EUR bn): 3.9 0.6 3.0 0.3 Total Fracture Orthopedics Soft Physiotherapy Management Goods and Braces 4% 3% 4% 1% Fracture Management Orthopedics Soft Goods Physiotherapy and Braces Moving into higher-value Increasing due to tr
Slide 16: Compression Therapy Market Overview
Compression Therapy Market Overview Global addressable compression market 2015 (EUR bn): Phlebology* / Lymphology* Mostly Lymphology* 2.4 1.0 0.9 0.5 Total Bandages Garments Pumps 5% 5% 5% 8% Bandages Garments Pumps Primarily to reduce swelling To reduce swelling/ To reduce lymphedema* lymphed
Slide 17: BSN Medical Addressable Market
BSN Medical Addressable Market North America Europe, Asia Pacific Market Size: Middle East Market Size: EUR 4.8bn and Africa EUR 2.1bn Market Size: ~5% ~4% EUR 3.9bn ~3% Latin America Market Size: EUR 0.8bn ~7% Bubble size: Market size Global Market Size 2015: EUR 11.6bn CAGR* 2015 - 2020
Slide 18: SCA and BSN Medical - Excellent Strategic Fit
SCA and BSN Medical - Excellent Strategic Fit Potential to Strengthen Supporting SCA’s Vision New Growth Platform Synergies BSN Medical Business Excellent strategic fit Entry into attractive adjacent Potential to strengthen BSN Expected annual synergies of at supporting SCA’s vision; medical solutio
Slide 19: Purchase Price
Purchase Price EURm Purchase Price Purchase price equity 1,400 Estimated net debt as of December 31, 2016 1,340 Total Consideration 2,740 Estimated Tangible Capital Employed as of December 31, 2016 310 Impact of Acquisition Estimated total intangible as of December 31, 2016 2,430 of which trademarks
Slide 20: BSN Medical Financials
BSN Medical Financials Net Sales Adjusted EBITDA* EURm EURm 1000 250 861 201 800 762 200 183 183 726 600 150 400 100 200 50 0 0 2013 2014 2015 2013 2014 2015 *Excluding items affecting comparability **CAGR (Compound Annual Growth Rate) December 19, 2016 20
Slide 21: Proforma 2015 SCA and BSN Medical
Proforma 2015 SCA and BSN Medical SCA Estimated Purchase Price Allocation SCA BSN Medical Amortization Combined Net Sales SEK 115.3bn SEK 8.1bn SEK 123.4bn Adjusted EBITDA* SEK 19.0bn SEK 1.9bn SEK 20.9bn Adjusted Operating Profit* SEK 13.0bn SEK 1.3bn ** SEK 0.3bn SEK 14.0bn *** Adjusted EBITDA Mar
Slide 22: Other Financial Information
Other Financial Information Transaction fully debt funded Committed acquisition bridge financing in place SCA remains fully committed to retaining solid investment grade rating Bridge funding to be replaced with ordinary funding over time Transaction costs amount to approximately EUR 25m Advisory fe
Slide 23: A Value Creating Acquisition
A Value Creating Acquisition Excellent strategic fit supporting SCA’s vision to improve well-being through leading hygiene and health solutions New growth platform Entry into attractive adjacent medical solutions markets Future industry consolidation opportunities Strengthens SCA’s global leading po
Slide 24: Q&A
Q&A December 19, 2016 24
Slide 25: Slide 25